Definition

A tax loss or credit that cannot be used in the current year but can be applied to future years to reduce taxable income or taxes owed.

Example

The company had a significant carryforward from last year's losses, which helped reduce their tax bill this year.

Conversation

Did you know you can carryforward tax credits to next year?

Really? I didn't know that was possible!

Yeah, it helps if you can't use them this year.

That's great information! I might need to look into it.

Synonyms & Antonyms

Root Explanation

Carryforward → It is formed from "carry" (from Old North French *carier*, meaning to transport or convey) and "forward" (from Old English *forweard*, meaning toward the front or in advance). The word "carryforward" means to transport or convey something to a later time or place, especially in a financial context.

Memory Tip

Think of transporting something 'forward' in time or space — 'carry' means to transport, and 'forward' means to move ahead.

Visually Confused Words